Fagron (FAGR) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 16% year-over-year to €552.5 million, driven by acquisitions and organic growth, especially in EMEA and Latin America.

• Organic growth at constant exchange rates (CER) was 3.1%, with EMEA and Latin America leading; normalization for GLP-1 would show higher growth.

• Adjusted EBITDA increased 12.7% to €107.1 million, with a margin of 19.4%, though margin declined 60bps due to North America-Pacific headwinds.

• Net profit rose 1.6% to €46.5 million; EPS reached €0.63.

• Six acquisitions completed, including Amber, Pharmavit, Magilab, Purifarma, Vepakum, and UCP, with integration and synergy realization progressing well.

Financial highlights

• Gross margin declined by 218–280bps year-on-year due to acquisitions and product mix changes, especially in North America-Pacific.

• Operating expenses rose but decreased as a percentage of revenue by 230bps.

• Net financial debt increased by €222.1 million to €505.4 million, with net debt/EBITDA at 2.1x.

• Operating cash flow improved by 10.8% to €58.1 million; free cash flow conversion was 40.9%, impacted by expansion capex.

• Effective tax rate decreased to 19.8% from 22.5% year-over-year.

Outlook and guidance

• FY 2026 guidance reiterated: mid- to high-single digit organic growth at CER and adjusted EBITDA margin around 20%.

• Capex expected at ~3.5% of revenue, excluding one-off projects; maintenance capex at 2.6% of revenue.

• Free cash flow conversion expected to normalize by year-end as working capital stabilizes.

• Confident in future demand trajectory, with all capacity expansion projects on track.

• North America-Pacific expected to recover in H2 as IV bag supply normalizes and GLP-1 impact lapses.